Most car dealerships will sell second hand cars as well as brand new models. The majority of dealers probably prefer the former because they can make higher profits on each sale. But, which brands give them the best chance for profit? We want to have a look at the latest top ten. You will want to keep an eye out for these vehicles if you are offering a car broker service. More dealers will likely be looking for them in the near future.
A new analysis by DealerAuction shows which vehicle brands provided the highest profits for dealers in April this year. The top spot was taken by Land Rover. Vehicles from the iconic brand can make average profits of £3,290 per sale. This is a healthy margin per vehicle. It can be much higher in some cases though depending on the age and specifications of the particular car.
The top ten also featured:
BMW was the second most profitable brand for dealers. Each sale would earn them an average profit of £2,760.
Mercedes-Benz had the third spot, falling just marginally behind their closest rival. Average profits on sales here were £2,670.
The German popularity continued in fourth spot with Audi. Average profit here was £2,430.
Volvo took the fifth spot with a surprising average profit of £2,270 per sale. The Swedish brand is popular because their vehicles have a reputation for safety and longevity.
Mazda is also quite a surprise inclusion on the list. They took sixth, with profits per sale averaging at £2,250.
The ever-popular Mini was seventh. The average per sale here was £2,210.
Spanish brand Seat just took the eighth spot ahead of Kia. The averages for both were £2,030 and £2,020 respectively.
The final spot was taken by Volkswagen. While they were the only top brand not to exceed the £2,000 profit mark, an average of £1,990 is still fantastic for dealers.
Demand and prices are still high
According to the data, the average profit for each sale of a second hand car is £1,500. That explains why dealers still want to deal with them. It also ensures there remains a lot of work for people to do when they offer a car broker service.
The latest data from Auto Trader also supports this. Their Retail Price Index showed that May was the fifth month for an increase in prices. It was an impressive 3.6% up on May 2022.
The situation creates lots of opportunities for dealers and brokers. Profit margins can be particularly robust because of price increases. It can mean higher commissions for a broker, especially if you can find cars from the top ten brands.
Do you want to offer a car broker service?
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